Hong Kong investors wait for law changes
Hong Kong businessmen, who are Thailand's fifth-largest investors, have called on the government to accelerate its amendments to the Foreign Business Act and clarify the use of nominees, in a bid to increase confidence among foreign investors.
James Thompson, chairman of Hong Kong's Crown Worldwide Group, one of the world's leading logistics firms, said the government must clarify the definition of nominees and ensure that the definition will not affect decisions by foreign investors to invest in Thailand."We [businessmen] are concerned about each country's business law, as it affects our business operation," he said. "The government must urgently clear up its amendments, to increase foreign investors' confidence." Crown Worldwide has more than 200 office branches in more than 50 countries. It is represented in Bangkok by a joint venture. Thompson, an American, said the Thai government should open business shareholdings without restriction, in order to attract more foreign investors. He pointed out that the need for at least 51-per-cent Thai ownership in order to enjoy benefits given to Thai companies might not create any benefits for Thailand, because it persuaded foreign investors to move to other countries. He said it also hindered development opportunities for Thai enterprises. He said the government should single out some priority businesses in order to protect Thai enterprises, while freeing up others to increase foreign investment. "The foreign-business laws in some countries, such as the "Son of the Land" in Malaysia, have created problems for multinational enterprises," Thompson said. The Thai government should amend its Foreign Business Act to facilitate foreign investment, while increasing opportunities for local companies to increase their operational efficiency. Vichai Varasirikul, the Thai consul-general in Hong Kong, said businessmen there had considerable interest in the Thai government's planned amendments to the Foreign Business Act. "Hong Kong businessmen are looking forward to the government's completion of its amendments within 60 days, to reassure them they can have confidence in investing in Thailand," he said. The Commerce Ministry set up a committee to study amendments to the Foreign Business Act in October. The results should be known by the end of this month. Thailand's Board of Investment reported that 25 Hong Kong companies invested in Thailand last year, giving them equity of more than 10 per cent in local projects and businesses. The total amount of their investment was Bt11.2 billion. In the first 10 months this year, 15 Hong Kong companies invested Bt9.76 billion in Thailand. Petchanet Pratruangkrai The Nation Hong Kong
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